New Rules Governing Estate Agents

protecting buyers and sellers in Valencia

Buy or sell with confidence in Valencia Credit: Gerd Altmann Pixabay

THE role of the Estate Agent is a very important one in Spain, especially in areas where there are large numbers of tourists, some of whom are looking to purchase a second home or to settle in Spain.

For many years, especially in the boom or bust times, it was very easy to set up as an estate agent and there is little doubt that whilst the majority have always been decent and above board, there have been more than a few ‘bad apples’.

Now the Valencian Community has decided that it’s time to ensure that those wishing to enter the profession are not only qualified to do so, but also are regulated in the same way that they are in much of Europe and the USA.

A new law which came in to effect in July of this year ensures that agents will have to demonstrate that they have a proper knowledge of the profession and take responsibility for their actions.

There will be a register of recognised estate agents operating in the region which will ensure that any ‘cowboys’ will be weeded out.

This law will therefore lead to an improvement in service guarantees and quality of service which will result in better protection for future home buyers.

Location

In general terms, each company will need to demonstrate that it has an office/premises accessible to the public and even those trading online within the province or externally must have a physical address within the Community.

Training

Every agent will be expected to undertake recognised training and pass exams in order to be able to display their right to practice in the real estate profession.

Solvency

To be able to offer their services in this area, any company will need to be able to demonstrate that it has insurances and other guarantees in place to cover its liability for any damage caused by its actions.

Insurance

In addition, civil liability insurance and additional cover will have to be in place in order to ensure that any deposits or similar amounts received during the purchase process can be refunded to the rightful owner in case of errors by the agent.

Registration

There is a deadline for registration by the end of August 2023 and there is a requirement that significant financial penalties may be levied in case any estate agent does not comply with the new regulations.

Those looking to purchase, sell or rent a property will be able to see a special registration number printed in red at any agents office in order to satisfy themselves that the agent is legitimate and properly registered.

In addition, check the list of registered agents at https://sforms.gva.es/sformssi.

This can only be a positive move to protect the public and should be welcomed not only by genuine real estate professionals but should also be considered a requirement throughout the nation.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Currently he is acting as Editorial Consultant for the paper helping to shape its future development. Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

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